Markets ended the week on a high note after a well received jobs number before the open Friday. It was the Nasdaq that was the MVP advancing for a sixth consecutive week rising 1.1% and volume for the second straight week was above average, not bad considering we are in the summer doldrums. Perhaps the fear of missing out is beginning to take hold. The tech rich benchmark is now just 10 handles from an all time high made last July. The S&P 500 did one better attaining an all time high Friday CLOSING right at the top of the daily range and breaking above a very taut bull flag pattern. Looking at the weekly returns from the major S&P sectors shows the financials were the best performers with the XLF up 1.6%. Down at the bottom were the utilities, a welcome sight for the bulls, with the XLU dropping 2.7% (the staples were the second worst performing group with the XLP off by .2%). The weekly loss was the second worst this year, and to show you how strong the sector has been this was the first time in ’16 that the ETF recorded back to back negative weeks. Lost in the shuffle was the strength of the energy group this week, although the XLE does not give it an accurate read on how well some names did. Some solid earnings reports were delivered with EOG popping more than 10% today CLOSING above the very round 90 number, which is important as the vast majority of stocks that trade through it go on to reach par and beyond (it was the first time trading above 90 since June ’15). On Thursday best in breed PE jumped 12% to hit all time highs. Below is the chart of QEP and how it was profiled in our Friday 7/29 Game Plan. This group carried the market on its back earlier in the year. Is it ready to assume that leadership role once again?
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